Compulsory Liquidation
Compulsory Liquidation is instigated by the Court, usually on the petition of a creditor, or a shareholder. There are grounds upon which the court can make a winding up order, the most usual being that the company is insolvent.

Upon the making of the winding up order, the Official Receiver becomes Liquidator of the company and has a duty to investigate the trading history of the company and submit a report to the DTI.

If appropriate, the Official Receiver will seek to appoint an Insolvency Practitioner as Liquidator in his place, either at a meeting of creditors or by application to the Secretary of State. The Liquidator's duty is to realise the Company's assets and distribute the proceeds to creditors.